Zip Co. Limited (ASX: ZIP)

Zip Co. Limited is a payments provider and credit card disruptor. It operates through segments: ZIP AU, ZIP Global, and Spotcap.

Technical Analysis: On the weekly chart, ZIP prices are trading in a primary downward trend. Prices are currently trading in a descending channel pattern getting stiff resistance of the upper band of the channel pattern. Prices are trading below its 21-period SMA on a weekly chart. Moreover, the momentum oscillator RSI (14-period) trading at ~13.28, further indicates that the stock is trading in a weak momentum. An important support level for the stock is placed at AUD 0.640, while the key resistance level is placed at AUD 1.050.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Considering the company’s current price levels trading in a primary downward trend, and momentum indicator analysis, it is prudent to suggest a ‘Watch’ on the stock. The stock was analysed as per the closing price of AUD 0.870 per share on 19^th May 2022, down ~3.87%.

Weekly Technical Chart – ZIP

Source: REFINITIV

International Graphite Limited (ASX: IG6)

International Graphite Limited is a graphite producer with its Springdale Graphite Project. It conducts its operations through its subsidiaries - International Graphite Springdale Pty Ltd., and International Graphite Collie Pty Ltd.

Business Developments: Signed a leasing agreement for a new R&D facility in Collie, Western Australia. The company is expected to kick start its pilot plant for Battery Anode Materials applications by Q3FY22. On April 26, 2022, it reached an MOU with ZEN Energy to purchase renewable energy for the development of downstream graphite processing facilities in Collie. IG6 is a recent debutant to ASX. It got listed on April 7, 2022.

Technical Analysis: Due to limited trading history, it is not possible to conduct technical analysis.

Considering the lack of technical analysis in the absence of trading history and historical losses in the past two years, it is prudent to suggest a ‘Watch’ on the stock. The stock was analysed as per the closing price of AUD 0.310 per share on 19^th May 2022, down ~6.06%.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Daily Technical Chart – IG6

Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where the stock prices tend to find resistance when they are rising, and the uptrend may pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 21-period, prices are currently in a bullish trend (Vice – Versa).

The Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 50-period, prices are currently in a bullish trend (Vice – Versa).

The Yellow colour line represents the Trendline.

The Purple colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period), which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status, while a reading of 30 or below suggests an oversold status.

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